2026.07.0114:30:18UTC+00Warsh Sees Easing Inflation Risks, Sticks to 2% Target Goal

Inflation pressures have moderated in recent weeks, but the US central bank remains firmly committed to returning inflation to its 2% target, Federal Reserve Chair Kevin Warsh said at the ECB’s annual Forum on Central Banking in Sintra, Portugal. Warsh emphasized that achieving price stability remains the Fed’s primary mandate, while noting that the strategy for reaching that goal will continue to adapt as conditions evolve.

He also highlighted the Fed’s independence in setting monetary policy, rejecting any suggestion that political considerations could shape its decisions. Warsh reiterated that the central bank will no longer offer traditional forward guidance on the future path of interest rates, marking a shift in its communication strategy. He declined to comment on the outlook for the upcoming policy meeting, stressing that each decision will be guided by incoming economic data.

At its meeting last month, the Fed left interest rates unchanged but signaled that support is building among policymakers for additional rate increases later this year, as inflation remains above the central bank’s target.